ORGANISATIONAL NARCISSISM: A CASE OF FAILED CORPORATE GOVERNANCE?

Recent corporate scandals in New Zealand, evidenced by the collapse of two major unlisted finance companies, involved narcissistic leadership, which in turn, had created narcissistic organisational identities where unethical behaviour was the norm. This paper uses a virtue ethics approach to argue that the narcissistic tendencies found in some directors, senior managers and organisational cultures are largely determined at the corporate governance level of the organisation. The BOD is ultimately responsible for the moral or immoral identity of the organisation. However, instead of advocating for rule-based reform, the authors contend that the problem lies with the character of the directors and the manner in which they exercise their judgement. An emphasis on virtuous character and practical wisdom will encourage the development of a moral organisational identity and consequently improve individual ethical behaviour in organisations. * Author for correspondence